Novell not for sale, but perhaps should be

Last week rumors swirled that Novell was planning to put some or all of its assets on the auction block. The rumors derived from J.P. Morgan analyst John DiFucci's misinterpretation of Novell CFO Dana Russell's comments, suggesting that Novell "entertained the possibility of breaking out some parts of or selling the entire company, in order to maximize shareholder value given the current depressed valuation levels."

Novell has since denied the implication that it's for sale. But it shouldn't be so hasty.

As The Register's Timothy Prickett Morgan suggests, a company should "never say never" about selling its assets, particularly when Novell has struggled to grow a profitable business.

Or, in Novell's case, when a company has assets like Groupwise that dilute the company's focus and do little to improve its top-line revenue growth. Novell's Linux and Identity Management businesses have potential. Its Workgroup business, on the other hand, continues to slide every single quarter.

While Russell is right to dispel public rumors of Novell being sold, the reality is that Novell should be considering the sale of some key assets, and likely is. Novell would be foolish to do otherwise.

Follow me on Twitter @mjasay.

[Fire Balls]

Novell... bye :)

[damiandennison]

What is wrong with Groupwise? Novell's big problem is that they charge way too much, they make really good products but the are very much the under dog in the every area they compete in and they charge as if they are the leader. They spend very little on good advertising and promoting the company. Microsoft did a very good job labeling them as an old obsolete company making products that is no longer needed. They need to shack that stigma, it is the same thing thing that is plaguing IBM with Lotus Notes. You say Novell or Lotus Notes to most people these days and they say old/out dated software.

If they can get rid of the stigma that have been placed on them they will do very well.

May be a name change with really good advertising, They do not have to be the best they just need people to think they are, just like apple does.

[Police_States_of_America]

they pissed off how many linux fanbois?

[ebsherman]

As I mentioned over on BNET (http://industry.bnet.com/technology/10002269/novell-considering-being-acquired/), Novell has phrased their denials carefully. They said to me that they had "no current plans to sell the company." When I pointed out that this statement wouldn't cover a consideration to sell, early stage negotiations, or sales of parts of the company, the spokesman said, "I stand by the statement." I read that as interested and open if not closing a deal today, which is far different from saying that it's not for sale.